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General Net Energy Metering Questions

Net Energy Metering (NEM) is a program designed to benefit our customers who generate their own electricity using eligible renewable technology.

The NEM program uses a bi-directional meter to track the "net" difference between the amount of electricity you produce and the amount of electricity you consume during each billing period. This can be accomplished on a cumulative basis or on a time-of-use basis, depending upon your rate schedule.

As a Residential/Small Commercial NEM customer, you will continue to receive monthly bills, but only for non-energy related charges such as taxes and fees. On an annual basis, you will be billed for electricity based on your net use for the previous year – for example, the amount of electricity you used minus the amount you generated. Large Commercial/Industrial NEM Customers will continue to receive monthly bills, which will require payment of the monthly non-energy related charges (taxes and standard billing fees) and “Net” energy charges.

Standard Solar & Renewables NEM

You receive credit at the same rate you would have been charged had you purchased the electricity from us. Read the NEM Rate Schedule.

To be eligible for NEM, your system must be sized to your historic electric use up to 1,000 kilowatts, located on your premises and interconnected to operate in parallel with our electrical system. We offer several NEM programs:

install a system using technology that the CPUC has determined will achieve reductions in emissions of greenhouse gases pursuant to subdivision (b) of PU Code § 2827.10, and

meets the emission requirements for eligibility for funding set forth in subdivision (c) of PU Code Section 379.6, and commence operation on or before January 1, 2014.

Virtual Net Metering (VNM)

Under Virtual Net Metering, the owner or operator of a multi-tenant property designates the percentage of the total metered output of the generator or generators, to be allocated to each tenant service account known as ‘Benefitting Accounts’.

1 To qualify for standard NEM, a fuel cell system must be powered solely with renewable fuel.

2 A “small hydroelectric” generating facility is not an eligible renewable generating facility if it will cause an adverse impact on in-stream beneficial uses or cause a change in the volume or timing of stream-flow.

In accordance with Assembly Bill 920, signed into law on October 11, 2009, customers on the NEM Rate Schedule are eligible to receive compensation for net surplus electricity in 2011. For more information, see the AB290 FAQs below.

Are there any Incentive Programs available to Customers interconnecting a renewable generator under the Net Energy Metering program?

Yes.

CSI is available to customers installing an eligible solar electric generating system with a nameplate rating up to 1000kW [CEC-A/C]. Incentives are paid either as a lump sum payment for smaller systems, or over the course of five years for larger systems. The program's two incentive payment types are:

Expected Performance Based Buy Down (EPBB): Pays a one-time lump sum payment ($ per watt) based on the system's estimated future performance. EPBB is available for systems under 30kW (CEC-AC) beginning in January 2010.

Performance Based Incentive (PBI): Payments will be made over a 5-year period on a monthly basis ($ per kilowatt-hour). As of January 2010 all systems >30kW (CEC-AC) must be on the PBI incentive structure.

NSHP is available to customers installing eligible solar photovoltaic (PV) systems on new residential buildings. The NSHP program provides two incentive structures, one for conventional or market rate housing and another for qualified affordable housing projects.

Refer to NEM Documents and Forms for required documents by NEM program type, to download forms and other resources.

1. Submit the initial Application Packet. This will consist of the application, Single Line Diagram and Plot Plan. Please submit as early as possible, before the system is installed and the final inspection by the local building and safety department is scheduled.

To expedite processing, we recommend you submit a signed NEM Interconnection Agreement with the Initial Application Packet.Notes:
We no longer require an original signature on The Interconnection Agreement for Renewable Technologies (Form 16-344) or The Agreement for Solar & Wind up to 10 kW (Form 14-923) so the signed Agreement may be faxed or mailed to us. For all other NEM programs, the original customer signature must be mailed to SCE NEM Program, P.O. Box 800, Rosemead, CA 91770. If we have not received a signed Agreement by the time we review the Application Packet, we will mail one to the customer to sign and return to us.

The individual signing the Interconnection Agreement must be duly authorized to bind the Customer of Record to its terms.

Residential customers: if the individual is not the person listed on the electric bill, they must be listed as a spouse on the service account. To add a spouse to an account, please call our Customer Service at 866-701-7868. Non-residential customers: unless the individual is an owner of a proprietorship, officer of a corporation, "director” or general manager of an agency, or an equivalent official. Please submit documentation showing the signature authority of the individual who does sign on behalf of the "Customer of Record."

2. Submit a copy of the Final Electrical Inspection and Approval from the local jurisdictional authority, typically the Building & Safety department, as soon as it is issued.

Application documents may be submitted via email to customer.generation@sce.com or by fax to 626-571-4272. As of March 31, 2011, we will no longer accept documents via mail except for original signed Agreements, when required, which may be mailed to:

Once your application packet has been reviewed and accepted, and the final electrical inspection of the system by the local building & safety department has been verified, you will receive a Permission to Operate (PTO) letter with an NEM tag for you to place on your meter to notify our field personnel about the presence of your generating system and as proof of your permission to operate.

For regulatory and safety reasons, your generating facility must not be interconnected prior to your receipt of the PTO letter and placement of the NEM tag on your meter.

On June 22, 2011, we hosted an NEM Interconnection Paperwork webinar for employees of installers who handle interconnection paperwork. The webinar covered important tips and tools to avoid returns and speed through interconnection. View the webinar.

Is there a size limit for email attachments?

Yes. We can accept email attachments up to 7 MB. However, if the total size of attached files exceeds 7 MB, please submit them in multiple emails adding the following to the subject lines: 'part 1 of 2,' 'part 2 of 2,' etc. Emails that are larger than 7 MB will be rejected by our email servers due to sizing limitations.

How long does the NEM application process take?

The NEM review process can take 2-5 weeks depending on the complexity of the system and how early in the process the paperwork is submitted.

We strongly recommend that you submit the application, Single Line Diagram, Plot Plan, and signed Interconnection Agreement as early as possible, at least 30 days prior to scheduling an inspection by the local jurisdictional authority. This allows ample time for us to evaluate program eligibility, conduct a technical review of the proposed system and initiate a meter change, if necessary. With this approach, We will be ready to issue a Permission to Operate (PTO) letter quickly upon receipt of the final electrical approval issued by the local jurisdictional authority.

Within 30 days of the date we receive your complete application, you will be enrolled in the NEM program, which will include a meter change if one is required and transition to the appropriate NEM rate schedule.

What happens once I’m enrolled in the NEM program?

Once you are enrolled in the NEM program, you’ll continue to receive monthly bills listing non-energy related charges, such as taxes and fees. On an annual basis, your bill will also include ‘net’ electricity charges – i.e. charges for the amount of energy you used minus the energy you produced.

All customers participating in Net Energy Metering (NEM) must have a bi-directional meter, one that measures electricity flow in two directions. If your current meter is not bi-directional, we will replace it with a bi-directional meter as part of enrolling you in an NEM program. Note: We charge Direct Access customers for meter replacement.

I received my Permission to Operate (PTO) letter, but it took a while before I started receiving kWh credits. Why?

Within 30 days of the date SCE recieves all required paperwork, you will be enrolled in the NEM program, which will include a meter change if one is required and you’ll begin to the billed on the NEM Rate Tariff.

I installed a solar system, why is my bill so high?

The weather conditions play a key role in solar generation system kWh production. If weather conditions are cloudy or rainy, the system will not generate as much as it would during clear and sunny conditions. You should also be conscious of the energy that you are using such as air conditioning, pool filters, etc.

I’m moving into a house with a self-generation system already installed. What do I need to do to benefit from the NEM program?

If there have been no modifications to the original installed system, and the system size is less than 30 kW, you don’t need to do anything. You will be automatically enrolled in the NEM program, and you will receive additional information via mail.

If your system is > 30 kW, or modifications are made to the original installed system, you will need to sign a new NEM Interconnection Agreement (Form 16-344). If the system is over 3 years old, it myst be inspected (Form 14-903) before you can enroll in the NEM Program. We will mail an Agreement and Inspection Form soon after you move in, or you can download the forms and email to customer.generation@sce.com

What is Virtual Net Metering?

Under Virtual Net Metering, the owner or operator of a multi-tenant property designates the percentage of the total metered output of the generator or generators, to be allocated to each tenant service account known as ‘Benefitting Accounts’. The kilowatt-hours (kWhs) allocated to each Benefitting Account is subtracted from the tenant’s consumption resulting in a credit in the same manner as under Schedule NEM. If kilowatt-hours (kWh) credits exceed kilowatt-hours (kWh) use, those credits are carried forward to the next billing cycle, until the conclusion of the tenant’s 12-month ‘Relevant Period’. Learn More>

All customers who qualify as net surplus generators on or after January 1, 2011 are eligible to receive payment for their surplus electricity at the end of their Relevant Period. To receive compensation, you must submit your selection form to us. The form will be sent to you prior to the end of your Relevant Period. We expect to be able to start issuing payments sometime in third quarter of 2011. We will communicate with eligible NEM customers as soon as the CPUC approves our NSCR.

What will happen if I don’t send a selection form to you?

If an eligible customer does not complete the form and select a compensation type for NSC, we will track and maintain a record of any NSC credit earned. Customers are not paid until we receive a completed selection form for the account.

What is AB 920?

Assembly Bill 920 (AB 920 – Huffman – Solar and Wind Generation) addresses several aspects of renewable energy in California, specifically the way we handle Net Energy Metering (NEM) net surplus generation. On October 11, 2009, Governor Schwarzenegger signed AB 920 into law. This changed the law that governs NEM for solar and small wind generators. Before the change, customers received no compensation at the end of their Relevant Periods for electricity exported to the grid beyond their own annual usage. As a result of AB 920, beginning January 1, 2011, customers can receive compensation for net exports to the grid at the time of their annual true up.

Sometimes I have a monetary credit at the time of my Relevant Period. Does this mean I will get credit?

Not necessarily. Payment is issued only if the customer has surplus net electricity (i.e., the customer exports more kilowatt-hours (kWh) to the grid than the customer uses over the Relevant Period). It is rare for a customer to have a monetary credit at the time of a Relevant Period and not actually have exported net surplus electricity. This can happen, however, with solar energy systems that export to our grid during peak periods when electricity is more expensive, and use energy from our grid during off-peak periods when electricity costs less.

What will happen if I install a larger-than-necessary solar system?

The NEM solar program is designed to enable customers to offset their usage, not to generate surplus energy to sell to us. To be a participant in the NEM program and NSCR, you are required to install a system that is sized to offset your annual onsite consumption.

If I change my mind about the type of compensation I want to receive, can I change my selection?

Net generation occurs when, over the course of your Relevant Period, your solar or wind generator exports more to the grid than you receive from us.

How can I tell if I have generated surplus electricity?

On your annual Relevant Period true-up statement, if the Total Energy Amount (kWh) is negative, you have generated surplus electricity and are entitled to compensation. If the Total Energy amount is positive, you used more electricity than you produced over the course of your Relevant Period.

How long will this program be in effect?

AB 920 has no identified end date at this time; however, the Legislature can make changes to any existing law, including AB 920, at any time.

How does AB 920 affect our NEM customers?

One provision of AB 920 directly affects SCE’s NEM customers by requiring SCE to offer compensation for any net surplus electricity that occurs during a customer’s Relevant Period. Customers must complete and return a Net Surplus Compensation Rate Selection Form (PDF) to receive compensation.

When will AB 920 take effect?

AB 920 provides that the program became effective as of January 1, 2011. The California Public Utilities Commission (CPUC), however, had to work with us to determine an appropriate Net Surplus Compensation Rate (NSCR) before we could begin compensating eligible NEM customers. We expect to begin compensating customers for their excess energy, retroactive to January 1, 2011, after the CPUC approves our regulatory filing, setting the NSCR sometime in 2011. We will notify eligible NEM customers when this occurs.

How did you handle surplus energy before AB 920 went into effect?

A customer’s NEM account has a designated Relevant Period of 12 months, based on the date the customer’s renewable energy generation system was interconnected to our system. Before AB 920, at the end of the Relevant Period, we reconciled the customer’s electricity consumption against accrued energy credits for the preceding Relevant Period, and zeroed out any remaining surplus energy credits.

How does AB 920 change the way surplus energy is handled?

AB 920 allows SCE to offer customers the option to receive compensation for any remaining net surplus energy generated during each 12-month Relevant Period. Customers can choose to receive compensation in the form of a check or rollover credits to be used to reduce future energy charges.

Is compensation for surplus energy automatic for our NEM customers?

To ensure that customers do not miss an opportunity to receive Net Surplus Compensation (NSC) we automatically enroll all of its NEM customers in the program and each customer will become eligible for payment starting with that customer’s 2011 true-up bill. However, customers may elect to opt out of the program and receive no compensation.

If you have net surplus electricity at the end of your typical 12-month Relevant Period starting in 2011, you will qualify for compensation for any surplus electricity.

If you do not have surplus electricity at the end of your typical 12-month Relevant Period, you will not be eligible for compensation and you will experience no change from the current NEM program. If you have net surplus electricity in any subsequent 12-month Relevant Period, you will qualify for compensation and will be notified of your eligibility.

The value of the NSCR is established on a monthly basis, View the NSCR.

What are RECs, and what do I need to do to receive payment for my RECs?

What is a REC?

REC stands for Renewable Energy Credit (also known as a WREGIS Certificate) and represents the renewable attributes of your solar or wind energy generation. Each REC represents one megawatt-hour (MWh) or 1,000 kilowatt-hour (kWh) of renewable generation and it is tracked and recorded by the Western Renewable Energy Generation Information System.

To create RPS eligible RECs, the generator must be certified with the CEC, registered with WREGIS, and report renewable generation to WREGIS.

You must have a generating system ≤ 360 kW in size to self-report; otherwise WREGIS requires a Qualified Reporting Entity (QRE)/Aggregator to report on your behalf.

You must obtain ownership certification of RECs before requesting compensation for any RECs.

What do I need to do to request REC payment for my AB 920 Net Surplus Generation (NSG)?

If you are interested in seeking Renewable Energy Credit (REC) compensation for any renewable attributes of your generation, as specified in the steps below, you must certify that you own the RECs associated with your generating facility and your net surplus generators must be certified as Renewable Portfolio Standard (RPS) eligible by the California Energy Commission (CEC). Your net surplus generator must also meet CEC-approved REC tracking requirements for your generation to be counted for RPS purpose.

To create RPS eligible RECs, the generator must be certified with the CEC, registered with WREGIS, and report renewable generation to WREGIS.

You must have a generating system ≤ 360 kW in size to self-report, otherwise WREGIS requires a Qualified Reporting Entity (QRE)/Aggregator to report on your behalf.

The REC portion of the excess generation compensation provides additional credit for energy generated by a renewable energy source. This extra compensation is called a Renewable Attribute Adder, and its rate is set annually. As of October 1, 2013, the rate was 1.6 cents per surplus kWh.

The CEC’s process has several steps to complete, and may be financially beneficial if you produce more than 12,000 surplus kWh over a 12-month period – but may not provide a worthwhile benefit otherwise.

To meet the RPS Guidebook requirements indicated above, you must submit documentation before we can evaluate compensation for REC attributes. These are the steps to request payment for RECs from Net Surplus Generation (NSG):

WREGIS will ask you to become an “Account Holder.” The Account Holder annual fee is based on the size of your generator. As of January 2014, the minimum fee was $200. Please reference WREGIS Fee Matrix and Definitions for more information.

Complete a CEC application for Renewable Portfolio Standard certification, available at www.energy.ca.gov/renewables/documents/index.html#rps. Have your WREGIS GUID on hand to complete your application.

Report your NSG in WREGIS for the related GUID (your NSG appears on your NEM bill statement at the end of your annual Relevant Period 12-month billing cycle). You must report to WREGIS the NSC kWh within 75 days (WREGIS Operating Rules page 37)

Complete the enclosed Net Surplus Compensation Rate and Renewable Energy Credits Compensation Selection Form 14-935, attach a copy of the CEC RPS eligibility certificate and submit it to SCE.

In WREGIS, transfer ownership of your RECs to SCE.

What is a WREGIS Qualified Reporting Entity (QRE)?

A Qualified Reporting Entity (QRE) in WREGIS is an organization providing renewable generation data for the purpose of creating WREGIS Certificates that has met the Qualified Reporting Entity Guidelines established in the QRE-ICD located on the WREGIS website www.wregis.org and WREGIS Operating Rules Section 10.1.

What are the requirements to be a WREGIS Qualified Reporting Entity (QRE)?

Go to the WREGIS web page and view WREGIS Active Account Holders public report at

Using the drop down list on the page, filter for Non-Balancing Authority Reporting Entity. You will notice that SCE is registered as a QRE in WREGIS. SCE, however, only acts as a QRE for its own RECs that it accumulates as a result of its power procurement activities. SCE does not perform QRE services for its customers.

What payment will I receive? How is it determined?

We will use a simple rolling average of day ahead “default load aggregation point” electricity prices from 7:00 a.m. to 5:00 p.m. corresponding to each customer’s 12-month Relevant Period, as the value of electricity portion of each customer’s individual NSCR. The NSC may fluctuate monthly, as it is based on a rolling 12-month average of spot market prices and will be posted electronically on a monthly basis. Based on current market prices, the rate would be approximately 4 cents per kWh.

How will I get compensated for the surplus electricity I generate?

At the end of your Relevant Period, if you have generated more kWh than used, we will send you a selection form that must be completed and returned to us before any compensation can be made. Your compensation selection will be noted on your electric bill and kept in your billing records until you decide to change your selection. The selection form describes your compensation options. There are two ways an NEM customer can receive NSC:

1. The customer may receive a check through the mail for the value of the net surplus generation, excluding any amount owed to us. At the end of each Relevant Period, the customer’s account will be zeroed out, and the new Relevant Period will begin on the next regularly scheduled meter read date.

2. The customer may roll the credit over to the next Relevant Period. We will reconcile the customer’s account and apply the NSC earned toward the customer’s next Relevant Period. At this point, the account will be zeroed out and the new Relevant Period will begin on the next regularly-scheduled meter read date. Any NSC credit can be applied to energy or non-energy charges. We will maintain a customer’s NSC credit indefinitely, until it is fully used, or until the account is closed. If your account is closed, we will return any unused credit in your account in the form of a check to the mailing address identified on your account.

Is there a minimum amount that you will compensate me for?

No, there is no minimum payment. We will compensate you for any NSC credit. Please refer to your tax advisor or the IRS for any rules related to the NSCR compensation.

How will you prompt customers when it is time to make a selection?

Before the end of each customer’s Relevant Period, we will send a notice reminding the customer that they may change the compensation selections.

Can I enroll in NSCR if I am a Direct Access customer?

At this time, the CPUC does not allow Direct Access customers to participate in this program. Direct Access customers’ ESPs may choose to offer NSC to their customers.

Can I enroll in NSCR if I am a Community Choice Aggregators or Energy Service Provider customer?

Customers of Community Choice Aggregators and Energy Service Providers are not eligible to receive payments from us for any NSC.

Can I enroll if I am a MASH / NSHP low income customer?

Yes. Each owner of either a tenant unit account or a common area account who receives credit under our NEM Virtual Net Metering (VNM) tariff is eligible for NSCR. If the customer’s electricity (in kWh) allocated to their account exceeds their usage during the Relevant Period, the customer may receive NSC.

What if I add more solar panels?

If you add solar panels after you receive your Permission to Operate, you must submit a revised Interconnection Application for your new system, including all additional equipment, to our Generation Interconnection Services. We will perform an engineering analysis to ensure our facilities can accommodate the increased generation capabilities of the new system. You must still meet all the requirements of the NEM program to continue on the NEM rate, including the size limitations. If you received a CSI or SGIP incentive for your solar or wind installation, you must also satisfy the requirements of those programs.

I moved into a house that has a solar system. How do I enroll in the program?

Most customers who move into homes with previously interconnected solar PV systems are automatically enrolled in our NEM program and are therefore eligible for the NSCR. If your PV system is larger than 30 kW, you must submit an Interconnection Agreement Form and if the solar system is over three years old, it must be inspected before you are enrolled in the NEM program. If you meet the program requirements you can qualify for the NSCR.

What if my panels are owned by a third party?

If you are an NEM customer, you will still be eligible to receive compensation for any net surplus electricity you generate. However, if you have relinquished ownership of your RECs to your system’s third party owner, you will only be paid for the wholesale value of the net surplus electricity and not for the associated REC. This is because payment for surplus electricity under this program is comprised of two components: the value of actual electricity generated and the value of the renewable attributes of this electricity (i.e. RECs). At this time, the CPUC and CEC have not determined the specific requirements of the REC certification.

What if I own the system and the renewable attributes as well? Will you pay me for both components?

The CPUC has placed a hold on any compensation for RECs until the CEC has set up a process to verify and track these attributes. Once this process is in place, the CPUC should allow us to make an additional payment to you in exchange for the REC value of your excess kWh.

I own more than one net energy metered property. Does this affect just me as the property owner, or each property I own?

Each NEM account is treated separately and cannot be combined. In addition, you must be the account holder of record to participate in the NEM program and participate in NSCR if eligible.

What would happen if I sold my house and moved out of your service area before my 2011 true-up? Would I still receive partial payment?

The legislation does not provide for pre-2011 compensation. If you moved before January 1, 2011, your account has been trued-up under the AB 920 program rules and you will not receive payment for any net surplus electricity you exported up to that time.

If I increase the capacity of my current system and become a net generator after the 2011 true up, will I be able to get a credit?

It depends on your continued eligibility for the NEM program. You will still need to qualify for NEM and file an amended Interconnection Agreement. If you meet the requirements for NEM and are a net surplus generator, you should be able to qualify for NSCR. Please see the question and answer above regarding adding more solar panels.

If I am temporarily unable to be a net generator due to circumstances beyond my control, such as fire, acts of nature, etc., and I cannot qualify for the new NEM program, will I still be able to participate in NSC?

Participation in the NEM program is a requirement for inclusion in the NSCR. If you subsequently re-qualify for NEM, then you will automatically be enrolled in the NSCR program.

What other incentives are available to me to increase my net generation capacity?

Who should customers contact if they have questions about choosing compensation?

For questions regarding the new NSC options, call our Customer Service at one of the following telephone numbers, Monday through Friday, 8:00 a.m. - 5:00 p.m.:
Residential NEM Customers: 866-701-7868 Business NEM Customers 866-701-7869

Resources

We are making this change in response to feedback we received from our customers. Some customers lose their unused NEM credits when their usage patterns result in excess generation in the months near the end of their Relevant Periods. One method to correct this situation would be for those customers to change the start date of their Relevant Period. To make it easier for you, we changed the NEM billing methodology to maximize the NEM energy dollar credits you receive over your 12-month Relevant Period. This eliminates the need for you to adjust your Relevant Period start date, and as a result, no action is required on your part.

When will this billing change take place?

This change will require us to make some modifications to our billing system before it can be implemented. We expect these modifications to be completed no later than fourth quarter 2014. Once completed, we will retroactively apply the new billing methodology to your NEM Relevant Period ending on or after December 15, 2013 - the date this change became effective.

Can I request a change to my Relevant Period start date?

You may elect to change the start date of your Relevant Period on a one-time prospective basis by completing and returning to SCE Form 14-936, NEM One-Time Relevant Period Change Request Form (i.e., aligning the Relevant Period to your business fiscal budget year; production cycles such as crop-growing season; other business needs; or personal convenience).

You will be responsible to select the date of the requested change. SCE must receive this form at least 60 days prior to the requested start date of the new Relevant Period. When the start date is changed, your existing Relevant Period will end and your new 12-month Relevant Period will begin. In no case will a Relevant Period extend beyond 12 months.

NEM Aggregation

What are the eligibility requirements for Net Energy Metering (NEM) Aggregation?

In order to qualify, your renewable generating facility must be sized to not exceed the annual on-site load of all the aggregated accounts. In addition, the renewable electrical generating facility, or a combination of those facilities, must have a total generating capacity of not more than one megawatt (MW).

All accounts must be located on the same property as the renewable electrical generating facility; or must be located on property that is adjacent or contiguous to the property on which the renewable electrical generating facility is located, and those properties must be all solely owned, leased or rented by the same customer. Properties that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are within an unbroken chain of otherwise contiguous parcels and are all solely owned, leased or rented by the same customer.

All accounts in an NEM Aggregation arrangement must be (1) all Bundled Service accounts; or (2) all Direct Access (DA) Service accounts served by the same Energy Service Provider (ESP); or (3) all Community Choice Aggregation (CCA) service accounts served by the same CCA.

You can have more than one NEM aggregation arrangement, but accounts may not be shared across multiple arrangements.

You must have an NEM-eligible generator to participate in NEM aggregation; however, you can also have a non-NEM–eligible generator behind the same meter of the aggregated accounts.

How do I apply for NEM Aggregation?

If you are not making modifications to existing generating facilities, complete and submit by email to customer.generation@sce.com the NEM Aggregation Form 14-937, listing the account directly interconnected to and located on the same property as the Renewable Electrical Generating Facility (REGF) and all additional metered service accounts to be aggregated.

If you are installing a new generating facility or are making modifications to existing generating facilities, please submit the standard Rule 21 interconnection application package (i.e., Form 14-732 or 14-753) by email to customer.generation@sce.com and include the NEM Aggregation Form 14-937, listing the account directly interconnected to and located on the same property as the REGF and all additional metered service accounts to be aggregated.

How does NEM Aggregation apply to Direct Access (DA) and Community Choice Aggregation (CCA) customers?

DA and CCA customers are eligible to participate in NEM Aggregation if your ESP or CCA agrees to support the NEM Aggregation provisions of Schedule NEM. The ESP or CCA must provide their agreement to support these provisions before your associated accounts can/will be placed on NEM Aggregation. You will receive only any applicable delivery credits from us, and must to look to your ESP or CCA for any corresponding generations credits.

If your ESP or CCA declines to support NEM Aggregation, you have several options:

You may choose to remain with your alternate service provider, forego being served on our Schedule NEM, and benefit from the reduced usage resulting from the operation of their system.

You may choose to switch to a different ESP that does support the NEM Aggregation provisions of our NEM tariff.

You may choose to return to our bundled service in order to qualify for NEM Aggregation.

Note: SCE cannot speak for the ESP or CCA and cannot discuss the ESP’s or CCA’s reason(s) for declining to support NEM or NEM Aggregation. This is an issue to be addressed between the customer and their ESP or CCA only.

Can I add or remove accounts included in the NEM Aggregation arrangement?

You can change the accounts included in an NEM Aggregation arrangement (either add or remove) provided the removal of any account(s) does not result in the REGF being oversized compared to the load of the remaining accounts.

Notification must be provided to us at least 60-days prior to the change taking effect, and such change remains in effect for a minimum of 12 months.

What are the NEM Aggregation Billing Services Charges?

There is a one-time $25 per account set-up fee, capped at $500.00 per NEM Aggregation arrangement. Any account added to an NEM Aggregation arrangement is subject to this one-time fee. There is also a $5 monthly billing fee per account.

These interim billing fees may be adjusted in late 2015 on a going-forward basis.

How will the bill credit be calculated for the NEM Aggregated arrangement?

The electrical consumption of kilowatt-hours (kWh) registered on each aggregated account’s meter will be reduced, for NEM billing purposes, by a proportional allocation, at the 15-minute interval level, of the electricity generated by the REGF that is exported to our grid. The proportional allocation is determined per billing period based on the cumulative consumption of each aggregated account compared to the cumulative consumption of your NEM Aggregation arrangement since the start of the relevant period, and the cumulative generation exported from the REGF since the start of the relevant period.

You are required to designate one account in the NEM Aggregation arrangement to receive any remaining kWh not allocated due to rounding, after the proportional allocation methodology described above is completed.

NEM AGGREGATION EXAMPLE (kWh)

Billing Account 1

Billing Account 2

Generation Account 1

Allocated Generation to Billing Account 1

Allocated Generation to Billing Account 2

January

100

400

400

80

320

February

150

500

500

116

384

March

300

600

800

260

540

Can I request Net Surplus Compensation (NSC) if I participate in NEM Aggregation?

Accounts participating in NEM Aggregation are not eligible for NSC; however, if an aggregated account that is not a generating account is separated from the NEM Aggregation arrangement, and subsequently qualifies for NEM, it is eligible to receive NSC on a going-forward basis, provided it meets all other NEM eligibility criteria.

How are the terms “Adjacent and Contiguous” applied for the purposes of participating in NEM Aggregation?

For the purposes of NEM Aggregation only, parcels that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are within an unbroken chain of otherwise contiguous parcels and are all solely owned, leased or rented by the Customer, as verified in Form 14-937. You are also eligible to participate in NEM Aggregation where all meters in an NEM Aggregation arrangement are located within an unbroken chain of contiguous parcels that are all solely owned, leased, or rented by you.

How do I apply for interconnection if I have an energy storage device?

If the storage device is paired with a Net Energy Metering (NEM) eligible generator (e.g., solar, wind, etc.), an interconnection application package (including but not limited to the Application Form 14-732, Interconnection Agreement Form 16-344 and Single Line Diagram) that includes the energy storage and NEM generator information must be submitted to Customer. Generation@sce.com. An Interconnection Addendum that describes the energy storage device will also need to be completed and submitted. This Addendum will be in place until SCE files an Advice Letter with the California Public Utilities Commission (Commission or CPUC) to update its tariffs and forms to accommodate NEM-paired storage devices (this filing will likely occur in Fall/Winter 2014). For metering requirements, see the FAQs below regarding this topic.

If the energy storage device is stand alone or not paired with an NEM generator, then the interconnection application must be submitted to Rule21@sce.com and is subject to the appropriate fees. For questions regarding the Rule 21 application process, send an email to interconnectionQA@sce.com or call 626-302-3688.

What is an NEM-paired storage system?

An NEM paired storage system is a term used to describe an NEM eligible generator that has an integrated or directly connected energy storage device (e.g., a battery) behind the same revenue meter.

Are there sizing requirements for an energy storage device paired with an NEM eligible generator?

If the energy storage device has an Inverter Rating of 10 kW (AC) and below, there are no sizing restrictions or requirements for the storage device (e.g., no requirement to be sized to the customer demand or the NEM generator).

For energy storage devices where the Inverter Rating is >10 kW (AC), the maximum output power of the storage device cannot be larger than 150% of the NEM Renewable Electrical Generating Facility’s (REGF) capacity. For example, if the REGF is sized to load at 20 kW, then the inverter rating for the storage device can be a maximum of 30 kW (AC).

Note that rebate programs such as the Self-Generation Incentive Program (SGIP) may have a different sizing requirement for the energy storage device. As such, you’ll need to ensure that the size of the storage device meets both the NEM tariff and rebate program requirements in order to qualify and take advantage of both programs.

Is an energy storage device considered a generator when paired with an NEM-eligible generator?

No. When paired with an NEM-eligible generator, the storage device is considered an addition or enhancement to that NEM-eligible generating facility and is not a separate “generator” as defined under the Rule 21 interconnection tariff, provided the applicable sizing and metering requirements are adhered to.

What (if any) are the metering requirements for an NEM-paired energy storage system?

For NEM-paired storage facilities where the storage device has an Inverter Rating of 10 kW (AC) and below, no additional metering on either the NEM REGF or the storage device is required. Instead, an estimation methodology will be used in lieu of metering to validate the eligible NEM credits. However, a customer can opt-in to installing a net generation output meter (NGOM) or non-export relay, when it is technically feasible to do so, instead of having the estimation methodology applied. In this case, the project must adhere to the metering requirements similar to those in the NEM-MT (multiple tariff) section of Schedule NEM. Metering costs are capped at $600, subject to the exceptions described below.

For NEM-paired storage facilities where the storage device has an Inverter Rating >10 kW (AC), the project must adhere to the metering requirements similar to those in the NEM-MT section of Schedule NEM. These projects will be required to 1) install a non-export relay on the storage device(s) or 2) install a NGOM directly to the NEM REGF(s). Projects falling under this category must adhere to the NEM-MT metering provisions, and are not eligible for the estimation methodology in lieu of metering.

Metering costs for NEM-paired storage projects are capped at $600. However, the $600 cap does not apply to systems requiring more complex metering solutions. For these purposes, “more complex metering” is defined as those systems requiring more than two self-contained meters or any non-self-contained meters (CTs/PTs).

Why is a net generation output meter (NGOM) or non-export relay required for an NEM-Paired energy storage systems where the storage device is > 10 kW?

An NGOM or non-export relay is required for NEM-paired storage systems where the storage device is sized >10 kW (AC) to ensure that NEM credits are only earned for energy generated and exported to the grid by the REGF.

If my NEM generator (i.e. photovoltaic, wind, etc.) has been issued the Permission to Operate (PTO) letter and I’m simply adding the energy storage device, what is the interconnection submittal process?

Although the PTO letter has been issued for the NEM generator, the addition of an energy storage device requires the customer to submit an interconnection application package. An interconnection application package (including but not limited to the Application Form 14-732, Interconnection Agreement Form 16-344 and Single Line Diagram) that includes the energy storage and existing NEM generator information must be submitted to Customer. Generation@sce.com. An Interconnection Addendum that describes the energy storage device will also need to completed and submitted. This Addendum will be in place until SCE files an Advice Letter with the CPUC to update its tariffs and forms to accommodate NEM-paired storage devices (this filing will likely occur in Fall/Winter 2014). For metering requirements, see the FAQs below regarding this topic.

If the energy storage device is stand alone or not paired with an NEM generator, then the interconnection application must be submitted to Rule21@sce.com and is subject to the appropriate fees. For questions regarding the Rule 21 application process, send an email to interconnectionQA@sce.com or call 626-302-3688.

Why is an estimation methodology being used for NEM-Paired energy storage systems where the storage device is ≤ 10 kW (AC)?

The CPUC, in the NEM-paired Storage Decision (D.14-05-033), explained that the use of an estimation methodology based on a presumed generation profile of the REGF balances the Commission’s priority of ensuring NEM integrity with a cost-effective solution.

Note that a customer with an NEM-paired storage device sized at or below 10 kW (AC) can opt-in to install an NGOM net generator output meter when it is technically feasible to do so instead of having the estimation methodology applied. Metering costs are capped at $600.

When will the estimation methodology for NEM-Paired energy storage systems where the storage device is ≤ 10 kW be applied and reflected on a customer’s account?

The CPUC is currently working with the Investor Owned Utilities (IOUs) and other stakeholders on developing the estimation methodology. The CPUC will issue a separate ruling on this matter. Until the estimation methodology is approved by the CPUC, NEM-paired energy storage systems where the storage device is ≤ 10 kW are permitted to interconnect under the existing NEM tariff without being subject to any metering or sizing requirements.

Will customers who previously paid applicable Rule 21 fees and charges get a refund as a result the NEM-Paired Storage Decision (D. 14-05-033), which places a $600 metering cost cap on NEM-Paired energy storage systems?

The refund for the metering portion is subject to the $600 cap, meaning if a customer had installed an NGOM as required and previously paid $800, for example, then SCE would refund $200 (difference between $600 cap and the amount paid), assuming the customer did not require a more complex metering solution (see question Metering Requirements).

Application fees, distribution upgrades, etc. are refunded at 100% of what was originally paid.

Can I remain on the current NEM tariff if I increase the size of my energy storage device paired with the NEM generator when the new NEM successor tariff is in place (after SCE’s 5% NEM cap is reached or on July 1, 2017 (whichever is earlier)?

The energy storage device’s inverter capacity can be increased by 10% and still remain on the current NEM tariff and be eligible for the 20-year transition period. Also, the 10% increase in the storage device’s inverter is independent from the 10% or 1 kW increase allowed for the NEM REGF.

For NEM-paired energy storage systems that share an inverter sized at 10 kW (AC) and below, an increase to the storage or generator are applied as a combined percentage for the purposes of the expansion calculation.

NEM-paired energy storage systems that share an inverter rated at >10 kW (AC) that are unable to adhere to the NEM-MT metering requirements are not eligible for NEM. As such, the expansion calculation that triggers a shift to the NEM successor tariff does not apply.

Does the size of the energy storage device paired with an NEM generator count towards the NEM 1 MW per Premises limit and 5% Participation Cap?

No, the size of the storage device does not count towards the 5% NEM cap or the 1 MW per premises limit. Only the size of the NEM REGF counts towards these limits.